INSUBCONTINENT EXCLUSIVE:
Separate advance payments for your vacation from the on-spot expenditures.
Summers are fading and monsoons are almost here, making travel destinations abroad attractive
Whether you plan a holiday during the monsoons or later, towards the festive season, financial planning is crucial to ensure you enjoy your
In such times, you can always resort to taking a vacation loan, which is essentially a personal loan for the purpose of travel.As any loan,
travel loans will add to your debt burden
To ensure that you have your debt management planned, here is a guide to plan your vacation finances.Make a BudgetThe first step is to make
a detailed budget preferably estimating 10 to 15 per cent higher costs to factor in the change in dollar rates and inflation
Include all costs starting from transportation costs to shopping estimates
Do not forget to factor in visa, currency conversion, travel insurance, international SIM and other related costs as well.Divide Advance and
On-The-Spot ExpensesSeparate advance payments for your vacation from the on-spot expenditures
For instance, flight fares, prepaid hotel bookings, train and bus bookings, concert tickets, city passes etc., which have to be purchased
before your holiday starts, should be calculated as advance costs
You will need this money at least two to three months before your holiday and in some cases like flight tickets, even earlier to get the
best deal.The rest will come under on the spot expenses like food, local travel sightseeing, tour guide costs, shopping and more
This will be the amount you or your fellow travellers need to carry either in cash, credit card or travel cardwhile on vacation
Add some extra funds to this amount for unexpected costs.Assess How Much Credit You NeedOnce you have your budget divided, assess how much
you need immediately to start your bookings and how much will you require as you embark on the trip
Start with flight bookings, which will comprise a major share of your expenses and try using your existing funds
If you feel your existing savings cannot be withdrawn or is not enough for flight bookings, add it to the credit requirement.Likewise, see
what aspects of the trip you can cover with your savings, and how much additional credit you require for yourself and your family, if they
The total credit required need not be taken by you alone
have assessed how much credit you need, calculate how you would like to pay it back
You can opt for a longer tenure to have smaller EMIs but may end up paying more in terms of interest
Make sure to check out pre-payment charges in case you think you can pay off larger chunks in between the tenure
It is recommended that you factor in your monthly expenses and yearly financial commitments and then assess the debt burden you can
take.(Adhil Shetty is CEO of Bankbazaar.com)Disclaimer: This is an advertorial and TheIndianSubcontinent is not responsible for the accuracy
and completeness of the same.
